Global brokerage house CLSA expects the calendar year 2019 to be strong for the IT sector that reported strong earnings growth in the quarter ended December 2018 on deal wins and execution.
"Infosys, HCL Technologies, Wipro and Tech Mahindra are expected to see strong growth in CY19 as the year is expected to be sharply better than CY18 for most Tier-1 IT firms," the investment firm said.
Stronger deal activity in the second half of CY18 promises 250-500 bps growth acceleration, it said.
CLSA expects NASSCOM, the trade association of Indian IT-BPM industry, to guide for 8-10 percent growth for the industry in FY20.
Hence, its top buys are Infosys and HCL Technologies among IT stocks.
The dollar revenue growth in Q3FY19 was strong for most Indian IT companies, despite headwinds like furloughs, holidays, and negative cross currency movement.
Large-cap companies reported a dollar revenue growth in the range of 0.7-4.9 percent despite a seasonally weak quarter, led by large deal wins throughout the year.
HCL Technologies reported the highest dollar revenue growth of 4.9 percent QoQ, followed by Infosys (2.3 percent), TCS (0.7 percent due to a muted performance of the BFSI vertical).
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
